A daily dose of market updates to guide your investment decisions.
August 10, 2026
Chart of the Day
Philippine GDP grew 2.3% year-on-year in Q2, supported by household spending, government expenditure, and strong exports. The latest print, however, is the slowest post-pandemic and remains below the government’s 3.5%-4.5% target for the full year. Sources: PSA, Metrobank Research
Financial market updates
The local pair opened 8.5 centavos higher at 60.90, tracking the bounce in global oil prices overnight. The official high was set at 61.06, as the softer local Q2 GDP print cooled BSP rate hike expectations.
In the afternoon, opportunistic peso bond inflows and dealers trimming dollar positions ahead of weekend remittances brought the pair below the 61-handle. The pair would close exactly where it had opened.
Expect US dollar strength to be choppy following a weak US nonfarm payrolls jobs report and still-elevated oil prices.
We prefer a nimble "buy on dips" stance amid ongoing US-Iran developments, with key USD/PHP supports at 60.85 / 60.60 and resistances at 61.05 / 61.25.
Local bond yields opened around 10 basis points (bps) higher on Friday, mirroring the sell-off in US Treasuries ahead of key labor data releases. However, persistent buying erased the opening gap after a weaker-than-expected Q2 2026 GDP print of +2.3%.
Trading activity was quieter in the afternoon, with the yield curve ending steeper on front-end positioning. Bonds up to 1 year rallied 10-15 bps, while the rest of the curve was mostly unchanged.
The Bureau of the Treasury (BTr) is set to offer up to PHP 30 billion in fresh supply at tomorrow’s FXTN 10-71 (7Y) auction. Our preliminary indicative range is 7.150% to 7.300%.
Some early bullishness is expected in local bonds, tracking strong US Treasury performance overnight. Late-Friday labor data showed a 23,000 decline in July Non-Farm Payrolls and revisions lower for May and June, easing bets on a near-term US rate hike.
The Philippine Stock Exchange Index (PSEi) recovered from early weakness brought on by a soft Q2 2026 GDP reading, closing up +0.20% day-on-day at 6,290.35.
Gains were led by sharp surges in ALI (+6.14%), PLUS (+6.11%), and URC (+2.74%), which effectively offset pullbacks in MYNLD (-1.49%), SCC (-1.48%), and MONDE (-1.25%).
Trading activity expanded to PHP 6.08 billion, though market breadth remained cautious with decliners (90) slightly outnumbering advancers (86).
Foreign traders accounted for 55.07% of overall volume, registering net foreign selling of PHP 339.35 million (PHP 3.25 billion bought vs. PHP 3.59 billion sold).
With US equities also up on declining expectations of a Federal Reserve rate hike, expect potentially improved risk appetite for Philippine stocks.
The report above is circulated for general information only. The opinions expressed are solely those of the contributors and are based on prevailing market conditions and public sources that are believed to be reliable. Metrobank and the report contributors/support staff do not make any guarantees or representation as to the accuracy, completeness or suitability of this report.
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